Major Gulf markets in the red ahead of US inflation data | Reuters

Major Gulf markets in the red ahead of US inflation data | Reuters

Major stock markets in the Gulf fell in early trade on Thursday as investors were cautious ahead of a key U.S. inflation report that could offer more clues about the Federal Reserve's monetary policy.

Markets are waiting for U.S. inflation data for September due later in the day to see if the Federal Reserve's interest rate campaign has had the desired effect on the economy and for further clues on the trajectory of interest rates.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy decisions because most regional currencies are pegged to the U.S. dollar.

Saudi Arabia's benchmark stock index (.TASI) slipped 0.8%, dragged down by losses in all sectors with Lumi Rental (4262.SE) falling 1.8% and the kingdom's largest lender Saudi National Bank (1180.SE) declining 1.3%.

Dubai's benchmark stock index (.DFMGI) fell 0.3% in early trade with Emaar Properties (EMAR.DU) losing 0.5% and Dubai Electricity and Water Authority (DEWAA.DU) slipping 1.2%.

In Abu Dhabi, the benchmark stock index (.FTFADGI) was down 0.1%, weighed down by a 1% drop in Alpha Dhabi Holding (ALPHADHABI.AD) and 1.2% decline in Aldar Properties(ALDAR.AD).

The Qatari benchmark index (.QSI) rose 0.5% with all sectors in the green, supported by 1.4% gain in Industries Qatar (IQCD.QA) and 1.4% rise in Dukhan Bank (DUBK.QA).

Meanwhile, investors continued to monitor developments on the conflict in Middle East with Israel's military saying on Thursday it conducted a "large-scale strike" in Gaza overnight, targeting an elite Hamas unit that led the deadly weekend attacks.